Question 15 On May 31, 2023, Laker Television Corporation signed an agreement with a contractor. According to terms of the contract, in July the contractor will repaint the tower that supports Laker Television Corporation's antenna. The total cost of the job is $10,000. On June 15, 2023, Laker Television Corporation paid $2,500 to the contractor as a deposit. Laker Television Corporation uses accrual accounting and has determined that this should be classified as repair & maintenance expense. How will Laker Television Corporation record the May 31 event? A Reduce cash by $2,500 and increase expenses by $2,500 0.35 Points B Reduce cash by $2,500 and increase prepaid expense by $2,500 No transaction should be recorded on May 31 because because deposit was remitted in June and the contractor's obligation will be fulfilled in July. D No transaction should be recorded on June 15 because the entire transaction will be captured in July.

On May 31, 2023, Laker Television Corporation signed an agreement with a contractor. According to terms of the contract, in July the contractor will repaint the tower that supports Laker Television Corporation's antenna. The total cost of the job is $10,000. On June 15, 2023, Laker Television Corporation paid $2,500 to the contractor as a deposit. Laker Television Corporation uses accrual accounting and has determined that this should be classified as repair \& maintenance expense. How will Laker Television Corporation record the May 31 event? Reduce cash by $2,500 and increase expenses by $2,500 (B) Reduce cash by $2,500 and increase prepaid expense by $2,500 No transaction should be recorded on May 31 because because deposit was remitted in June and the contractor's obligation will be fulfilled in July. No transaction should be recorded on June 15 because the entire transaction will be captured in July